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Rensing Groomers is in the dog-grooming business. Its operating costs are described by the following formulas: Grooming supplies (variable) y=$0+$5x Direct labor (variable) y=$0+$14xy=$9,100+$2x Overhead
Rensing Groomers is in the dog-grooming business. Its operating costs are described by the following formulas: Grooming supplies (variable) y=$0+$5x Direct labor (variable) y=$0+$14xy=$9,100+$2x Overhead (mixed) Milo, the owner, has determined that direct labor is the cost driver for all three categories of costs. Prepare a flexible budget for activity levels of 510,580 , and 690 direct labor hours. (List variable costs before fixed costs.) RENSING GROOMERS Flexible Budget $ $ $ (c) Calculate the total cost per direct labor hour at each of the activity levels specified in part (a). (Round answers to 2 decimal places, e.g. 10.25.) Activity level 1$ Activity level 2$ Activity level 3$ (d) The groomers at Rensing normally work a total of 650 direct labor hours during each month. Each grooming job normally takes a groomer 1.30 hours. Milo wants to earn a profit equal to 40% of the costs incurred. Determine what he should charge each pet owner for grooming. (Round answer to 2 decimal places, e.g. 10.25.) Charge per client $
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